Income Taxes (Tables)

12 Months Ended

Oct. 31, 2013

Schedule of Income Before Income Tax, Domestic and Foreign

The components of income from continuing operations before income taxes and extraordinary items and the income tax provision related to income from all operations in our Consolidated Statements of Income consist of:



Years Ended October 31, (In thousands)	2013		2012		2011
Income before income taxes:
United States	$	38,911	$	40,650	$	5,449
Foreign	273,360		234,802		187,315
	$	312,271	$	275,452	$	192,764
Income tax provision	$	15,365	$	26,808	$	17,334

Schedule of Income Tax Provision Related to Income from Continuing Operations

The income tax provision (benefit) related to income from continuing operations in our Consolidated Statements of Income consists of:



Years Ended October 31, (In thousands)	2013			2012			2011
Current:
Federal	$	21,605		$	17,863		$	11,448
State	1,053			1,400			606
Foreign	9,895			14,351			9,700
	32,553			33,614			21,754

Deferred:
Federal	(8,058		)	(3,573		)	(1,859		)
State	(815		)	(851		)	(270		)
Foreign	(8,315		)	(2,382		)	(2,291		)
	(17,188		)	(6,806		)	(4,420		)
Income tax provision	$	15,365		$	26,808		$	17,334

Schedule of Provision for Income Taxes Attributable to Income from Operations and Amount Computed by Applying Statutory Federal Income Tax Rate

We reconcile the provision for income taxes attributable to income from operations and the amount computed by applying the statutory federal income tax rate of 35% to income before income taxes as follows:



Years Ended October 31, (In thousands)	2013			2012			2011
Computed expected provision for taxes	$	109,295		$	96,408		$	67,468
(Decrease) increase in taxes resulting from:
Income earned outside the United States subject to different tax rates	(97,002		)	(71,282		)	(56,877		)
State taxes, net of federal income tax benefit	525			294			218
Foreign source income subject to United States tax	294			—			—
Research and development credit	(2,066		)	(131		)	(1,183		)
Incentive stock option compensation and non-deductible employee compensation	371			347			(119		)
Tax accrual adjustment	2,854			665			7,167
Other, net	1,094			507			660
Actual provision for income taxes	$	15,365		$	26,808		$	17,334

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to the deferred tax assets and liabilities are:



October 31, (In thousands)	2013			2012
Deferred tax assets:
Accounts receivable, principally due to allowances for doubtful accounts	$	1,145		$	1,073
Inventories	4,812			4,916
Litigation settlements	184			199
Accrued liabilities, reserves and compensation accruals	36,377			41,760
Restricted stock	19,925			19,395
Net operating loss carryforwards	5,514			3,563
Plant and equipment	3,555			3,999
Research and experimental expenses - Section 59(e)	5,318			6,815
Tax credit carryforwards	11,091			8,700
Total gross deferred tax assets	87,921			90,420
Less valuation allowance	(968		)	(1,107		)
Deferred tax assets	86,953			89,313
Deferred tax liabilities:
Tax deductible goodwill	(21,575		)	(19,038		)
Transaction cost	(1,144		)	(1,144		)
Foreign deferred tax liabilities	(10,179		)	(19,365		)
Other intangible assets	(20,195		)	(24,548		)
Bonus adjustments under new accounting method	(1,300		)	(2,601		)
Total gross deferred tax liabilities	(54,393		)	(66,696		)
Net deferred tax assets	$	32,560		$	22,617

Schedule of Changes in Gross Unrecognized Tax Benefits

The aggregated changes in the balance of gross unrecognized tax benefits were as follows:



(In millions)
Balance at October 31, 2011	$	27.4
(Decrease) from prior year's UTB's	(1.0		)
Increase from current year's UTB's	4.6
UTB (decrease) from tax authorities' settlements	(0.9		)
UTB (decrease) from expiration of statute of limitations	(2.0		)
Increase of unrecorded UTB's	—
Balance at October 31, 2012	28.1
(Decrease) from prior year's UTB's	(1.3		)
Increase from current year's UTB's	6.4
UTB (decrease) from tax authorities' settlements	—
UTB (decrease) from expiration of statute of limitations	(6.8		)
Increase of unrecorded UTB's	—
Balance at October 31, 2013	$	26.4